Brazil’s “Wall Street” Problem

Mark Weisbroth, director of the Center for Economic and Policy Research (Washington, D.C) writes in his article:

Brazil has a structural problem that is similar to one of our biggest problems in the United States: The financial sector is too big and too politically powerful. Since this sector does not have much interest in growth and development — it is much more obsessed with its own profits and minimizing inflation — its control over the Central Bank and macroeconomic policy keeps Brazil from achieving its potential. And the country’s potential is huge: from 1960-1980 Brazil’s economy grew by 123 percent per person. If Brazil had maintained this rate of growth, Brazilians would haveEuropean living standards today.